The Motley Fool

1 Top TSX Millionaire-Maker Stock to Buy in April 2021

Image source: Getty Images

For a couple of decades now, investors in Constellation Software’s (TSX:CSU) have seen some pretty incredible growth. Take a look at the company’s long-term stock chart to see what I mean. Indeed, this is a millionaire-maker stock if I’ve ever seen one.

Recent years have been just as good to growth investors. Indeed, in Q4 of 2020, Constellation’s revenue grew 14% year over year to a whopping $1.1 billion. Spurring this growth has been a series of acquisitions totaling $239 million.

Here’s why I think this high-growth stock is a perfect one for those looking for a millionaire-maker to put in their TFSA today.

Constellation stocks: A TFSA gem

The capital appreciation potential with this stock is where it’s at.

Indeed, the fact that Constellation has turned $75,000 into over $2 million over the past decade underscores the importance of keeping such holdings in a TFSA. Constellation’s performance record over the years speaks for itself and continues to garner the attention of both seasoned and new investors alike.

Investors willing to put their money away in a growth stock for the long haul should consider Constellation stocks in a TFSA. Besides tax-free returns, investors also benefit from its liquidity. When you compare other registered accounts, you will note that investors are free to withdraw or deposit money from this TFSA as per their needs. Needless to say, this makes the TFSA a great solution for those with large expenditures on the horizon.

Many investors are already aware that there is a cap of $6,000 per year one may deposit into a TFSA. Then again, an investor who meets the qualifying criteria since TSFA’s introduction may have accumulated up to $75,500 over the years.

Acquisitions the story with Constellation

Constellation is a growth-by-acquisition play. Accordingly, investors in Constellation make money when the company does deals.

The fact that Constellation’s management team has announced plans to potentially eliminate its dividend is a good thing. The company hopes this move will allow it to do larger deals over time.

Constellation is a company that’s a deal-making machine. Indeed, with over 500 acquisitions under its belt, this company has successfully continued to expand in a thoughtful, and profitable, way. The cycle of continuing to reinvest new cash flows into similarly excellent businesses benefits long-term shareholders greatly.

Accordingly, I’m very bullish on this stock as perhaps the best growth play in Canada. I think there’s lots of room for optimism that this company can continue on its growth trajectory for the next decade.

Thus, those seeking a millionaire-maker stock have found it. There’s no comparison on the TSX right now, in my view.

Like this top growth pick? Here are a few other millionaire-maker stocks to consider right now:

The 10 Best Stocks to Buy This Month

Renowned Canadian investor Iain Butler just named 10 stocks for Canadians to buy TODAY. So if you’re tired of reading about other people getting rich in the stock market, this might be a good day for you.
Because Motley Fool Canada is offering a full 65% off the list price of their top stock-picking service, plus a complete membership fee back guarantee on what you pay for the service. Simply click here to discover how you can take advantage of this.

Click Here to Learn More Today!

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Constellation Software.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.